From Domain:
Despite some of Australia’s heavyweight property markets – including Sydney – recording price declines, one expert is forecasting significant house price growth in 2018 across Australia.
Melbourne’s property market is expected to climb between 7 to 12 per cent in 2018, while Sydney is anticipated to soar between 4 and 8 per cent next year, SQM Research managing director Louis Christopher’s Housing Boom and Bust Report 2017 shows.
AdvertisementThese are ”base case” scenarios that reflect the forecast outcome if interest rates remain stable, if the banking regulator – the Australian Prudential Regulation Authority – doesn’t act to dampen lending activity and the Australian dollar remains stable.
While a strong growth outlook for Sydney would come as a surprise for some after recent data found prices had fallen in the harbour city, Mr Christopher said the market was “a repeat of the second half of 2015”.
If you agree with this then there’ll be macroprudential to choke it off pretty quickly.
The last time prices rebounded after APRA macroprudential it took two rate cuts. There’s no such respite coming this time. Indeed, there is ongoing tightening in interest-only only rollovers and a lower foreign bid.
I can’t see it.
